Week of May 23, 2011
INTEREST RATE UPDATE
Current Trend Direction: Mortgage Rates Lower
This morning, news of the ongoing problems in Europe is causing another flight to safety into US bonds; stocks are sharply lower on the news as well.
From a technical standpoint, however, bonds continue to test a very tough ceiling of resistance that it has hit many times and cannot seem to break above. At the same time, stocks are trading right at support, so a break below this could give bonds another boost – meaning possible lower rates.
